Bharat Aluminum Company, more commonly known as Balco, has found an effective way to keep their sector of the aluminum industry going. Through collecting raw materials locally, increasing worker efficiency, reducing high costs and more, the Chhattisgarh company owned by Vedanta has greatly cut spending and upped production success.
When asked about how the company had dealt with the situation, Balco director Ramesh Nair replied that although they were faced with a drop in commodity pricing, they transformed this challenge into an opportunity. They brought in measures to counteract this and lessened losses, making way for higher production.
Worldwide demand of the malleable metal was what most affected the drop in price, the Aluminum Association of India reports.
An option to collect local coal from Korba was another excellent way to save the company money. Anil Agrawal, chairman of Vedanta, facilitated the first meeting in Korba in November 2016, in hopes of motivating the company to take action. Alongside the locally-sourced coal, Balco’s previously shut down sheet-rolling plant recently reopened and restarted production.
Now, Balco is working towards raising its annual aluminum production from 0.6 million tonnes to one million. The producer plans to search for new raw materials to achieve this goal and maintain the twenty-five percent market share they hold.
For a company that employs approximately 7500 people, we can only hope their future plans will bring them the success that their past actions have.